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What do economist mean when they say that monetary policy can exhibit cyclical asymmetry?
Monetary policy may be highly effective in slowing expansions and controlling inflation but much less reliable in pushing the economy from a recession-particularly if it is severe. In short, monetary policy may suffer from cyclical asymmetry.
If pursued vigorously, a tight money policy could deplete commercial banking reserves to the point where banks were forced to reduce the volume of loans. That would mean a contraction of the money
supply, higher interest rates, and reduced aggregate
demand. The Fed can turn down the monetary spigot and eventually achieve its goal.
But it cannot be certain of achieving its goal when it turns up the monetary spigot. An easy money policy suffers from a "You can lead a horse to water, but you cannot make it drink" problem. The Fed
can create excess reserves, but it cannot guarantee that the banks will actually make the loans and thus increase the supply of money. If commercial banks, seeking liquidity, are unwilling to lend, the efforts of
the Fed will be of little avail. Similarly, businesses can frustrate the intentions of the Fed by deciding not to borrow excess reserves. And the public may use money pumped into the economy via openmarket
operations to pay off existing bank loans.
Furthermore, a severe recession may so undermine business confidence that the investment demand curve shifts to the left and frustrates an easy money policy.
What else can I help you with?
What will A cancerous growth on the skin will likely exhibit?
asymmetry
What kind of symmetry do sponges exhibit?
Sponges are asymmetrical, although a few species have nearly radial symmetry.
What organism is asymmetrical?
Asymmetry, or the absence of symmetry, most often occurs in sessile organisms or in slow-moving forms such as amebas .
What are some characteristics of something that is cyclical?
Cyclical things exhibit regular patterns of repetition or fluctuation, often following a specific sequence of events, such as seasons in nature or economic cycles. They typically have identifiable phases that repeat over time, moving in a continuous loop or cycle.
Is Microsoft a cyclical stock?
Microsoft is generally considered a more stable, non-cyclical stock due to its strong position in the technology sector and recurring revenue models, such as subscriptions for software and cloud services. While it can experience fluctuations in response to economic conditions, its diverse product offerings and essential services help insulate it from severe cyclical downturns. Therefore, while it may exhibit some cyclical characteristics, it is primarily viewed as a growth and defensive stock.
What is a cyclical function?
A cyclical function is a type of function that repeats its values in regular intervals, known as periods. Common examples include the sine and cosine functions, which oscillate between specific values over defined intervals. These functions are often used to model phenomena that exhibit periodic behavior, such as waves, seasons, or circular motion. The periodic nature of cyclical functions makes them essential in various fields, including mathematics, physics, and engineering.
What is the type of symmetry of a sponge?
Sponges exhibit a type of symmetry known as asymmetry. Unlike many other animals, sponges do not have a defined shape or symmetry, as they can vary greatly in form and structure. Some sponges may exhibit a degree of radial symmetry, but overall, they lack the organized symmetry seen in more complex organisms.
What type of symmetry do sponges exhibit How does this differ from organisms belonging to phylum Cnidaria Arthropoda?
Sponges exhibit asymmetry, meaning they lack any distinct symmetry. In contrast, organisms from phylum Cnidaria and Arthropoda typically exhibit radial symmetry (such as jellyfish) or bilateral symmetry (like butterflies), respectively, where body parts are arranged around a central axis or mirror images are present on either side of the body.
What phylum has no body symmetry?
Sponges belong to the phylum Porifera and exhibit no body symmetry. Their bodies lack definite shape and are composed of specialized cells organized in a loose aggregation. Sponges are the simplest multicellular organisms and showcase a unique form of asymmetry in the animal kingdom.
Is exhibit pronoun or common noun?
Exhibit can be a noun or a verb: The art exhibit made him exhibit sympathetic feelings. It is not, however, a pronoun.
Can you give me a sentence with exhibit?
This exhibit is outstanding!
What is the necessary condition for a molecule to exibit optical activity?
The necessary condition for a molecule to exhibit optical activity is for it to be chiral, meaning it cannot have a plane of symmetry. This asymmetry causes the molecule to interact differently with polarized light, rotating the plane of polarization as it passes through.
